In the 2023-24 fiscal year, Pakistan has seen record-high increases in the prices of petroleum products. This sharp rise is mainly due to strict requirements from the International Monetary Fund (IMF), affecting not just petrol and diesel prices, but also the costs of electricity and gas.
Petrol and Diesel Prices Soar:
For the first time ever, a 60 rupee tax was placed on both petrol and diesel because of IMF requirements. This caused the prices of these crucial fuels to hit their highest levels in the country’s history.
- Beginning of the Fiscal Year: At the start of the fiscal year, petrol priced at 262 rupees per liter, while diesel was at 260 rupees 50 paisa per liter.
- Current Prices: As the fiscal year draws to a close, petrol has risen to 268 rupees 36 paisa per liter, and diesel to 270 rupees 22 paisa per liter.
- Peak Prices: On September 16, 2023, during the caretaker government, petrol hit an all-time high of 331 rupees 38 paisa per liter, and diesel reached 329 rupees 18 paisa per liter.
Electricity Price Hikes:
Throughout 2024, consumers have faced continuously increasing electricity costs, with a staggering total burden of over 1,700 billion rupees imposed through various charges:
- Basic Tariff Increase: 700 billion rupees added.
- Permanent Surcharges: 335 billion rupees added.
- Monthly and Quarterly Adjustments: Over 700 billion rupees added.
Significant Gas Price Increases:
The fiscal year also saw two substantial hikes in gas prices, exacerbating the financial strain on households:
- November 1, 2023: Gas prices for domestic consumers increased by up to 172%.
- February 1, 2024: Gas prices for domestic consumers raised by an additional 67%.
Furthermore, fixed charges for non-protected consumers increased from 460 rupees to 2,000 rupees.
The sharp rise in prices of petroleum products, electricity, and gas has made life much harder for people, adding to the overall inflation and making daily expenses tougher to manage.
As the fiscal year 2023-24 ends, these high costs highlight Pakistan’s serious economic problems. Consumers and the broader economy will probably continue to feel the effects of these price increases in the coming months.
